ADV.L Regulatory News (ADV)

29 Jul 2009 07:00



Advent Capital (Holdings) PLC

("Advent" or the "Company")

Advent, the specialist Lloyd's insurer, today reports its results for the six months ended 30 June 2009.

Key highlights 

Profit after tax of £4.1 million (2008: profit £1.2 million).

Pre-tax profit of £5.7 million (2008: profit £1.6 million).

Underwriting profit of £11.7 million and combined ratio of 91% (2008: 99%). The combined ratio, excluding reinsurance to close premiums (RITC), was 82%.

Gross premiums written, excluding the RITC, increased by 19% to £132.5 million (2008: £111.7 million) principally due to the stronger US dollar.

Our long term debt which matures in 2026 and 2035 is not subject to refinancing risk.

Market conditions and pricing have improved, in line with expectations, particularly in the reinsurance account.

Recommended offer by Fairfax to buy all of the Company's shares at 220p per share

  Financial summary 

	Six months (unaudited)
	2009	2008	Year  2008	Year  2007	Year 2006
	£'000	£'000	£'000	£'000	£'000
Gross premiums written	203,800	150,238	209,637	126,912	115,356
Net premiums written	138,997	121,854	168,659	106,199	88,201
Net premiums earned	123,675	85,138	157,262	95,984	81,694
Underwriting profit (loss)	11,722	894	(24,164)	20,912	21,064
Profit (loss) before tax	5,709	1,598	(14,351)	25,161	22,853
Profit (loss) after tax	4,057	1,175	(8,945)	19,192	16,011
Return on equity	4.3%	1.1%	(8.5%)	21.6%	25.1%

	Six months (unaudited)
	2009	2008 Restated (2)	Year 2008	Year 2007 Restated	Year 2006 Restated
Per share amounts
Earnings (loss)  - basic	10.0p	2.9p	(22.0)p	47.2p	43.3p
Dividend	-	12.5p	12.5p	-	-
Net assets	243p	257p	233p	267p	219p
Net tangible assets	226p	240p	216p	249p	199p

Operating ratios
Claims ratio	77% (1)	83%	93%	50%	53%
Expense ratio	14% (1)	16%	22%	29%	30%
Combined ratio	91% (1)	99%	115%	79%	83%
Net notified loss ratio  (by respective year of account)	8%	17%	86%	32%	17%

(1) claims ratio of 55%, expense ratio of 27% and a combined ratio of 82% excluding the impact of reinsurance to close (RITC) premium

(2) The six months 2008, and years 2007 and 2006 expense ratios have been restated to exclude the impact of foreign exchange, consistent with the presentational change made for the full year 2008 accounts.

  

Advent Capital (Holdings) PLC
Keith Thompson  Chief Operating Officer		020 7743 8200
Trevor Ambridge Chief Financial Officer		020 7743 8200
Neil Ewing Investor Relations		020 7743 8250
Fox-Pitt Kelton Cochran Caronia Waller
Simon Law		020 7663 6023
Jonny Franklin-Adams		020 7663 6029
Pelham Public Relations
Damian Beeley		020 7337 1508
Zoë Pocock		020 7337 1532

  Financial Review

For the six months ended 30 June 2009, the Company's profit before tax increased to £5.7 million from £1.6 million for the first half of 2008 while basic earnings per share were 10.0p for the first half of 2009 (2008: 2.9p).

The results for the first half of 2009 reflect the generally benign claims environment and the release of unutilised catastrophe margins of £5.0 million at 30 June 2009. This compares with the first half of 2008 when the Company recorded single risk property losses, net of reinsurance recoveries and reinstatement premiums, of £7.0 million in excess of business plan losses.

The underwriting profit of £11.7 million for the first half of 2009 includes:

Underwriting profit of £8.6 million on the 2009 year of account including the release of unutilised catastrophe margin of £5.0 million at 30 June 2009.  

Underwriting profit of £3.1 million on the 2008 year of account after the negative effect of £3.9 million resulting from the translation of US denominated premiums into sterling at the 2008 average exchange rate of £1.85/£ while incurred losses have been translated at £1.49/£ for the first half of 2009 (Foreign Exchange Effect).

Underwriting profit of £0.3 million on the 2007 and prior years of account representing small improvements in prior years' reserves.

Overall, prior years' reserves proved stable during the first half of 2009 with deterioration in prior years' claims, net of reinsurance recoveries and reinstatement premiums, of £0.6 million, unchanged from the first quarter (2008: £0.2 million). 

For the six months ended 30 June 2009, the Company had an underwriting profit of £11.7 million and combined ratio of 90.5% compared with an underwriting profit of £0.9 million and combined ratio of 99.0% in 2008.  Excluding the RITC premiums from the closure of Syndicate 2's 2002 and prior years of account of £55.1 million and Syndicate 780's 2006 year of account of £4.1 million (2008: £34.2 million from Syndicate 780's 2005 year of account), the combined ratio for the first half of 2009 was 81.8% on net earned premium of £64.5 million (2008: 98.2% on net earned premium of £50.9 million).

Underwriting Review

For the six months ended 30 June 2009, gross premiums written, excluding the RITC premiums, increased by 18.7% to £132.5 million from £111.7 million in 2008, primarily reflecting the impact of the US dollar which strengthened by 25% to an average rate of $1.49/£ for the first half of 2009 from $1.98/£ for the first half of 2008. 

Excluding the RITC premium, net premiums written decreased by 8.9% to £79.8 million from £87.6 million in 2008, while net premiums earned increased by 26.7% to £64.5 million from £50.9 million in 2008. Net premiums written and earned for the first half of 2009 reflect ceded premiums of £22.3 million and £9.7 million respectively under the quota share reinsurance agreement with an AM Best A rated subsidiary of Fairfax Financial Holdings Limited in respect of 40% of the property reinsurance lines of business for Syndicate 780's 2009 underwriting year of account (Fairfax Quota Share). 

  Insurance Segment Review

	30 June 2009
	Non-MarineReinsurance	PropertyInsurance	Marine	Syn 3330 (Formerly Syn 2)	Total
	£'000	£'000	£'000	£'000	£'000
Gross premiums written	106,888	24,366	5,380	67,166	203,800
Net premiums written	62,547	17,506	3,824	55,120	138,997
Net premiums earned	40,405	18,730	9,420	55,120	123,675
Net claims incurred	(23,072)	(14,330)	(2,192)	(54,853)	(94,447)
Acquisition costs	(4,795)	(5,017)	(2,231)	-	(12,043)
Operating costs	(2,728)	(1,864)	(412)	(459)	(5,463)
Underwriting profit (loss)	9,810	(2,481)	4,585	(192)	11,722
Claims ratio	57.1%	76.5%	23.3%	99.5%	76.4%
Acquisition costs	11.9%	26.8%	23.7%	-	9.7%
Operating costs	6.8%	10.0%	4.4%	0.8%	4.4%
Expense ratio	18.7%	36.8%	28.1%	0.8%	14.1%
Combined ratio	75.7%	113.3%	51.3%	100.3%	90.5%
Adjusted combined ratio excluding effect of RITC premium	73.0%	113.3%	51.3%	-	81.8%

  

	30 June 2008
	Non-Marine Reinsurance	Property Insurance	Marine	Syn 2	Total
	£'000	£'000	£'000	£'000	£'000
Gross premiums written	116,591	15,374	17,746	527	150,238
Net premiums written	96,167	10,652	14,466	569	121,854
Net premiums earned	62,722	13,247	8,600	569	85,138
Net claims incurred	(53,888)	(12,771)	(3,490)	(580)	(70,729)
Acquisition costs	(4,088)	(3,436)	(1,987)	(79)	(9,590)
Operating costs	(2,518)	(510)	(588)	(309)	(3,925)
Underwriting profit (loss)	2,228	(3,470)	2,535	(399)	894
Claims ratio	85.9%	96.4%	40.6%	102.0%	83.1%
Acquisition costs	6.5%	25.9%	23.1%	13.9%	11.3%
Operating costs	4.0%	3.9%	6.8%	54.3%	4.6%
Expense ratio	10.5%	29.8%	29.9%	68.2%	15.9%
Combined ratio	96.4%	126.2%	70.5%	170.2%	99.0%
Adjusted combined ratio excluding effect of RITC premium	92.2%	126.2%	70.5%	170.2%	98.2%

Non-Marine Reinsurance

For the six months ended 30 June 2009, the Non-Marine Reinsurance account had an underwriting profit of £9.8 million and combined ratio of 75.7% reflecting the generally benign claims environment and release of unutilised catastrophe margins of £3.8 million at 30 June 2009.  In the first half of 2009, the Foreign Exchange Effect reduced the underwriting profit by £1.4 million and increased the combined ratio by 1.8%. This compares with an underwriting profit of £2.2 million and a combined ratio of 96.4% in 2008 which was negatively impacted by single risk property losses, net of reinsurance recoveries and reinstatement premiums, of £5.4 million.  Excluding the RITC premium, the combined ratio was 73.0% for the first half of 2009 (2008: 92.2%).  

For the six months ended 30 June 2009, net premiums written and earned of £96.2 million and £62.7 million respectively are after the Fairfax Quota Share with ceded net premiums written and earned of £22.3 million and £9.7 million respectively.

Advent Re

For the six months ended 30 June 2009, Advent Re had an underwriting loss of £0.1 million. Advent Re has entered a quota share reinsurance agreement with the Advent corporate member for a 25% participation on Syndicate 780's 2009 year of account. The quota share reinsurance agreement provides Advent Re with access to a diversified portfolio of seasoned reinsurance and insurance business. During the first half of 2009, Advent Re wrote premiums, net of brokerage, with third party clients of $1.7 million (2008: $13.2 million).

  

Property Insurance

For the six months ended 30 June 2009, the Property Insurance account had an underwriting loss of £2.5 million and combined ratio of 113.3% reflecting prior years' premium reductions of £1.6 million and an increase in the frequency and severity of attritional claims from the Binder accounts. In the first half of 2009, the Foreign Exchange Effect reduced the underwriting profit by £0.9 million and increased the combined ratio by 3.3%. This compares with an underwriting loss of £3.5 million and combined ratio of 126.2% in 2008 which was negatively impacted by single risk property losses of £4.4 million, reductions in ultimate premium estimates and overall deterioration on the 2006 and 2007 years of account.

Marine

For the six months ended 30 June 2009, the Marine account had an underwriting profit of £4.6 million and a combined ratio of 51.3%, reflecting better than expected attritional loss experience on the physical damage and Operators extra expense accounts for the 2007 and 2008 years of account, partially offset by a small increase in the 2008 Hurricane losses. In the first half of 2009, the Foreign Exchange Effect reduced the underwriting profit by £1.6 million and increased the combined ratio by 3.6%. This compares with an underwriting profit of £2.5 million and combined ratio of 70.5% in 2008.

Syndicate 3330 (formerly Syndicate 2)

Syndicate 3330 had an underwriting loss of £0.2 million for the six months ended 30 June 2009.  Syndicate 2 had an underwriting loss of £0.4 million in 2008.

Syndicate 780 - Net notified loss ratio at six months (excluding IBNR)

Year of account	1994	1995	1996	1997	1998	1999	2000	2001
% net notified	18.1%	4.3%	9.1%	7.1%	17.8%	15.3%	8.9%	12.8%
Year of account	2002	2003	2004	2005	2006	2007	2008	2009
% net notified	2.1%	4.7%	9.4%	12.2%	4.7%	9.8%	17.4%	7.9%

The 2009 net notified loss ratio of 7.9% principally reflects winter storm losses in the US regional catastrophe book and Australian fires in the worldwide catastrophe book. The 2008 net notified loss ratio included net notified single risk property losses arising in the first half of 2008.

Catastrophe Exposure

At 30 June 2009, the Company's consolidated exposure to any one of the major Lloyd's Realistic Disaster Scenarios (RDS), from Syndicate 780 and Advent Re, is summarised below. 

		30 June  2009	30 June 2009	1 January 2009	1 January 2009
	Industry Loss	Gross loss	Net loss	Gross loss	Net loss
Catastrophe Event	US$bn	£m	£m	£m	£m
Gulf of Mexico Windstorm	$113	77.2	24.0	90.0	39.8
USA North East Windstorm	$78	70.7	22.6	87.9	40.6
Los Angeles Earthquake	$78	66.4	23.8	73.6	42.7
European Windstorm	$31	62.5	22.1	60.7	31.3
Japan Earthquake	$51	47.1	18.4	49.2	27.1

The Gulf of Mexico catastrophe event, before consideration of any Syndicate 780 or Advent Re catastrophe margins, would result in an estimated after tax loss of £18.2 million or 18.4% of shareholders' equity (1 January 2009: £30.4 million and 32.2% respectively). The decrease results from a combination of the Fairfax Quota Share, exposure management and the run-off of Advent Re policies.  

Expenses

For the six months ended 30 June 2009, the underwriting expense ratio (excluding acquisition costs and foreign exchange gains or losses) as a percentage of net earned premiums, (excluding RITC), was 4.4%, compared with 4.6% in 2008, reflecting the increase in net premiums earned. 

Investment Return

For the six months ended 30 June 2009, the investment return decreased to £2.3 million (2008: £5.1 million), reflecting the lower interest rates in the United States and the United Kingdom, and the reversal of unrealised gains at 31 December 2008.

The duration of the Syndicates' US dollar investment portfolio is approximately 0.9 years. It is wholly invested in government or government guaranteed securities, with an overall return on US bonds of 0.6% for the first half of 2009 (annualised return of 1.2%). Neither the syndicates nor the Company invest in asset backed or mortgage backed securities (ABS and MBS), corporate bonds, equities or derivatives. Certain overseas deposits managed by Lloyd's (over which the Company has no investment control) have been invested in corporate bonds and ABS as referred to in note 5 to the financial statements. 

Advent Re's funds (included in corporate balances below) continued to be invested mainly in short term US treasury bills.  The investment return for the first half of 2009 was 0.23% (annualised return of 0.46%).

Our investment mix as at 30 June 2009 is shown below.

			30 June  2009	31 December  2008
	Syndicates	Corporate	Total	Total
Investment mix	£'000	£'000	£'000	£'000
Government debt securities	200,318	137,748	338,066	349,850
Cash and cash equivalents	8,000	14,071	22,071	12,136
Overseas deposits and money market funds	16,745	-	16,745	10,597
Total	225,063	151,819	376,882	372,583

The increase in cash and investments to £376.9 million at 30 June 2009 from £372.6 million at 31 December 2008 principally reflects the increase in the Company's share of Syndicate 2's assets as they have been reinsured into Syndicate 3330, which is wholly owned by the Company, offset by the impact of the weaker US dollar with an exchange rate of $1.65/£ at 30 June 2009 ($1.44/£ at 31 December 2008).

  Capital Management

		30 June   2009		31 December  2008
		£'000		£'000
Long term debt - subordinated - senior		29,905 26,967		34,162 30,852
		56,872		65,014
Shareholders' equity		98,772		94,536
Debt to equity ratio		58%		69%
Debt to total capital ratio		36%		41%
Interest coverage		4x		(2 x)

For the six months ended 30 June 2009, the weighted average interest rate on the Company's debt was 5.28%, down from 7.30% for the first half of 2008. The interest rate on the Company's US dollar debt is the weighted average of 4.16% above 3 month US dollar LIBOR and resets quarterly.

The Company's long term debt has no financial or other covenants, other than the payment of interest quarterly and principal on maturity. Interest on the Company's subordinated debt of £29.9 million can be deferred and not paid for up to five years, without creating an event of default. The long term debt has maturities of £29.9 million in 2026 and £27.0 million in 2035. The debt is callable only at the Company's option after five years from date of issue.

2009 Business Plan Update

The Syndicate has written gross premiums, net of brokerage, for the 2009 year of account (at Lloyd's Premium Income Monitoring rates of exchange of $1.50/£), of £125.6 million, before the Fairfax Quota Share.

Gross premiums written for the Reinsurance account were ahead of plan by £1.0 million reflecting the better than expected rating environment in for 2009. USA Catastrophe rates were up by 5% to 10% on regional programmes, with some nationwide programmes seeing rate increases of 10% to 25%, depending upon loss activity. Worldwide catastrophe rates have increased by up to 5%. Risk excess and assumed classes, primarily 1 January renewals both saw rates increases of up to 10%.

Premiums written for the Property Insurance account are below plan by £2.0 million reflecting competitive market conditions in the insurance market.  Property Insurance terms and conditions remain firm with the rating environment showing initial signs of firming. Rate increases of up to 10%, particularly on the Open Market account, are currently being achieved with further rate increases expected as the year progresses.

Premiums written for the Marine account were £3.6 million. The Energy market has now adopted a much more disciplined approach to all areas of coverage in this class, following the substantial losses seen from Hurricanes Gustav and Ike. New wordings have been introduced that specifically define coverage, resulting in much tighter conditions.  Rating levels for International business continue to rise between 10 - 20%, with increased deductibles seen on many of the higher valued risks.

Outlook 

Our results for the first half of 2009 reflect a generally benign claims environment compared with 2008 and improving market conditions as reinsurers and insurers alike seek to achieve better underwriting returns given low investment returns and reduced capacity. 

We are now in the US hurricane season and, although we have diversified our portfolio over the last three years, if there is a major hurricane we would expect to be involved. We have taken significant steps in re-underwriting our energy portfolio which now excludes Gulf of Mexico wind exposed cover and accordingly, would not expect our 2008 experience to be repeated.

Our experienced management and underwriting team is well prepared to take advantage of these improving market conditions while maintaining our focus on underwriting profitability.

I am pleased that the Company has reached agreement, as announced on 17 July 2009, on the terms of a unanimously recommended cash offer under which Fairfax will acquire the entire issued and to be issued ordinary share capital of Advent not already owned by Fairfax for the price of 220p per share.

Fairfax has been a long standing supporter of the Advent business as a shareholder and as a direct supplier of capital to Advent's underwriting activities at Lloyd's. Outright ownership of the business by Fairfax is intended to stabilise and strengthen the capital position of the business and gives staff and Advent's markets a strong message as to the future direction of the business.

Brian F Caudle

Chairman

28 July 2009

  CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2009

	Note		Six months				Year
			2009 (unaudited)		2008 (unaudited)		2008 (audited)
			£'000		£'000		£'000
Income
Gross premiums earned	4		83,176		58,317		159,145
Reinsurance to close premium			59,190		34,246		34,246
Reinsurance premium ceded	4		(18,691)		(7,425)		(36,129)
Net premiums earned	4		123,675		85,138		157,262
Investment income	5		2,287		5,062		15,127
Other operating income			209		237		502
Total Income			126,171		90,437		172,891
Expenses
Claims incurred	4		(39,059)		(39,180)		(141,534)
Reinsurance to close claims	4		(59,190)		(34,246)		(34,246)
Reinsurance recoveries	4		3,802		2,697		29,371
Acquisition costs			(12,043)		(9,590)		(25,570)
Underwriting expenses			(5,463)		(4,126)		(9,447)
Profit (loss) on exchange			(4,517)		(32)		3,808
Corporate costs			(2,193)		(2,359)		(5,366)
Total Expenses			(118,663)		(86,836)		(182,984)
Operating profit (loss)			7,508		3,601		(10,093)
Interest on debt			(1,799)		(2,003)		(4,258)
Profit (loss) before tax			5,709		1,598		(14,351)
Tax	7		(1,652)		(423)		5,406
Profit (loss) for the period attributable to ordinary shareholders			4,057		1,175		(8,945)
Other comprehensive income			-		-		-
Total comprehensive income for the period			4,057		1,175		(8,945)
Earnings per ordinary share
- Basic	6		10.0p		2.9p		(22.0p)
- Diluted	6		9.9p		2.9p		(22.0p)

The notes form an integral part of these financial statements.

  CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2009

	Note		30 June				31 December
			2009		2008		2008
			(unaudited)		(unaudited)		(audited)
			£'000		£'000		£'000
Assets
Cash and cash equivalents	5		22,071		33,760		12,136
Financial investments at fair value	5		354,811		270,760		360,447
Other receivables			13,086		5,640		4,855
Insurance and reinsurance assets
- Reinsurers' share of outstanding claims	4		49,015		18,877		55,081
- Reinsurers' share of unearned premiums	4		35,641		17,701		1,592
- Debtors arising from insurance and reinsurance operations			111,742		83,019		69,898
- Deferred acquisition costs			15,525		15,461		10,150
Deferred tax asset			19,416		15,242		21,071
Property and equipment			312		524		472
Intangible assets	8		6,843		6,938		6,843
Total assets			628,462		467,922		542,545
Equity
Share capital	6		20,329		20,329		20,329
Share premium account			60,662		60,662		60,662
Capital redemption reserve			21,065		21,065		21,065
Other reserves			(2,322)		(2,603)		(2,501)
Retained earnings (deficit)			(962)		5,101		(5,019)
Total shareholders' equity			98,772		104,554		94,536
Liabilities
Insurance and reinsurance liabilities
- Outstanding claims	4		326,729		203,768		314,444
- Unearned premiums	4		92,438		84,496		43,067
- Creditors arising out of insurance and reinsurance operations			48,917		19,418		19,881
Trade and other payables			4,734		7,650		5,603
Long term debt	6		56,872		48,036		65,014
Total liabilities			529,690		363,368		448,009
Total liabilities and shareholders' equity			628,462		467,922		542,545

The notes form an integral part of these financial statements.

  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2009

	Share capital	Share premium	Capital re-demption reserve	Other reserves	Retained earnings	30 June  2009 (unaudited)  Total	30 June 2008 (unaudited) Total	31 Dec  2008 (audited) Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 January	20,329	60,662	21,065	(2,501)	(5,019)	94,536	108,398	108,398
Profit (loss) for the period	-	-	-	-	4,057	4,057	1,175	(8,945)
Dividends Share based payments	- -	- -	- -	- 179	- -	179	(5,082) 63	(5,082) 165
Balance at end of period	20,329	60,662	21,065	(2,322)	(962)	98,772	104,554	94,536

 

The notes form an integral part of these financial statements.

  CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2009

	Note		Six months				Year
			2009		2008		2008
			(unaudited)		(unaudited)		(audited)
					Restated
			£'000		£'000		£'000
Cash flows from operating activities	9		12,106		6,544		(12,871)
Interest paid			(1,911)		(2,048)		(4,245)
			10,195		4,496		(17,116)
Cash flows from investing activities
Interest received			706		2,302		4,990
Purchase of property and equipment			(27)		(44)		(163)
			679		2,258		4,827
Cash flows from financing activities
Dividends paid			-		-		(5,082)
			-		-		(5,082)
Net increase (decrease) in cash and cash equivalents			10,874		6,754		(17,371)
Exchange movements on opening cash and cash equivalents			(939)		28		2,529
Cash and cash equivalents at 1 January			12,136		26,978		26,978
Cash and cash equivalents at end of period	5		22,071		33,760		12,136

 

The notes form an integral part of these financial statements.

  NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. BASIS OF PREPARATION OF INTERIM CONSOLIDATED FINANCIAL STATEMENTS

These interim consolidated financial statements should be read in conjunction with the Company's consolidated financial statements for the year ended 31 December 2008 as set out on pages 38 to 71 of the 2008 Report and Accounts.

These interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) and in accordance with International Accounting Standards (IAS) 34 Interim Financial Reporting.  The policies utilised are also consistent with those set out on pages 42 to 44 of the Company's consolidated financial statements for the year ended 31 December 2008. 

Status of the interim financial statements

The interim financial statements have been reviewed by the Company's auditors PricewaterhouseCoopers LLP. These interim financial statements do not constitute accounts as defined in section 435 of the Companies Act 2006.

The results for the year ended 31 December 2008 are based on the Company's statutory accounts which received an unqualified audit opinion from the Company's auditors, and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The Company's Report and Accounts for the year ended 31 December 2008 have been filed with the Registrar of Companies.

  2. FOREIGN EXCHANGE RISK MANAGEMENT

The principal exchange rates used in translating foreign currency assets, liabilities, income and expenditure in the preparation of these financial statements were:

	30 June 2009				30 June 2008				31 December 2008
	Period average rate		Period end rate		Period average rate		Period end rate		Period average rate		Period end rate
US dollar	1.49		1.65		1.98		1.99		1.85		1.44
Euro	1.12		1.17		1.29		1.26		1.26		1.03
Canadian dollar	1.80		1.91		1.99		2.02		1.96		1.77

The Company had foreign exchange gains and losses in respect of underwriting and corporate activities as follows: 

	Six  months  2009		Six  months  2008		Year 2008
	£'000		£'000		£'000
Underwriting	(3,923)		201		15,811
Corporate	(594)		(233)		(12,003)
Net gain (loss)	(4,517)		(32)		3,808

The Company's policy is that it is not in the business of taking or speculating on foreign currency risk. Its objective is to match each major currency position (US$, £, CDN$ and Euro), including its share of the underlying assets and liabilities of its managed syndicates. Monthly, the Company reviews its consolidated foreign currency statement of financial position, prepared in its principal currencies, including its share of the assets and liabilities of its managed syndicates. Action is taken to reduce or mitigate foreign currency mismatches through the purchase or sale of the appropriate currencies.

At 30 June 2009, the Company's asset and liability positions in its major foreign currencies were as follows:

	30 June 2009 (unaudited)
	US$m	£m	CDN$m	€m
Total assets	697.7	182.3	31.4	12.5
Total liabilities	(685.2)	(79.0)	(25.0)	(20.3)
Net assets (net liabilities)	12.5	103.3	6.4	(7.8)

	31 December 2008 (audited)
	US$m	£m	CDN$m	€m
Total assets	541.3	143.3	25.1	12.1
Total liabilities	(538.4)	(54.2)	(18.2)	(19.4)
Net assets (net liabilities)	2.9	89.1	6.9	(7.3)

The Company has designated US$54.6 million of its long term debt as a hedge of its net investment in Advent Re at 30 June 2009 (31 December 2008: US$ 54.8 million). 

  3. OPERATING RESULTS

	Six months 2009 (unaudited)		Six  months 2008 (unaudited)		Year 2008 (audited)
	£'000		£'000		£'000
Underwriting profit
Syndicate 780 - Non-Marine
Underwriting Year of Account
2009 - open	8,618		-		-
2008 - open	3,080		1,769		(30,492)
2007 and prior - open	313		267		1,922
2006 and prior closed	-		(717)		3,016
Total Syndicate 780	12,011		1,319		(25,554)
Syndicate 3330 (Formerly Syndicate 2)	(192)		(399)		(1,118)
Advent Re	(97)		(26)		2,508
Underwriting profit (loss)	11,722		894		(24,164)
Managing Agency
Agency fees	10		23		46
Recharges to Syndicates	199		214		456
	209		237		502
Other
Investment result	2,287		5,062		15,127
Interest expense	(1,799)		(2,003)		(4,258)
Corporate costs	(2,193)		(2,359)		(4,353)
(Loss) profit on exchange	(4,517)		(233)		3,808
Fairfax offer - related costs	-		-		(1,013)
Profit (loss) before tax	5,709		1,598		(14,351)

4. INSURANCE RISK MANAGEMENT 

Insurance segment results

The underwriting results of Advent Re are included in the Non-Marine Reinsurance segment. Acquisition costs consisting of direct brokerage commissions, are allocated to each segment on a direct basis while operating costs, including underwriting costs, are allocated based on gross premiums written.

For catastrophe exposed business, including multiple peril coverage, the Company recognises premiums as earned based on the underlying exposure to catastrophe. As a result, a greater proportion of premium income on catastrophe exposed business is earned in the second half of the year when the company is exposed to greater risk of hurricane related losses.

The reinsurance to close (RITC) premium and claims are included in the Non-Marine Reinsurance segment for Syndicate 780 and Syndicate 3330 for Syndicate 2 and are valued at the RITC transaction date of 1 January 2009. Subsequent movements in premiums and claims from the RITC are reflected in the segments to which they relate in claims incurred and reinsurance recoveries on the statement of comprehensive income. Syndicate 2's 2002 and prior years of account were closed into Syndicate 3330, a syndicate wholly supported by the Company and managed by Cavells, effective 1 January 2009.

	Non-Marine Reinsurance		Property Insurance		Marine		Syndicate 3330		Total
	£'000		£'000		£'000		£'000		£'000
Six months 2009 (unaudited)
Gross premiums written	106,888		24,366		5,380		67,166		203,800
Net premiums written	62,547		17,506		3,824		55,120		138,997
Net premiums earned	40,405		18,730		9,420		55,120		123,675
Net claims incurred	(23,072)		(14,330)		(2,192)		(54,853)		(94,447)
Acquisition costs	(4,795)		(5,017)		(2,231)		-		(12,043)
Operating expenses	(2,728)		(1,864)		(412)		(459)		(5,463)
Underwriting profit (loss)	9,810		(2,481)		4,585		(192)		11,722
Combined ratio	75.7%		113.3%		51.3%		100.3%		90.5%

	Non-Marine Reinsurance		Property Insurance		Marine		Syndicate 2		Total
	£'000		£'000		£'000		£'000		£'000
Six months 2008 (unaudited, restated)
Gross premiums written	116,591		15,374		17,746		527		150,238
Net premiums written	96,167		10,652		14,466		569		121,854
Net premiums earned	62,722		13,247		8,600		569		85,138
Net claims incurred	(53,888)		(12,771)		(3,490)		(580)		(70,729)
Acquisition costs	(4,088)		(3,436)		(1,987)		(79)		(9,590)
Operating expenses	(2,518)		(510)		(588)		(309)		(3,925)
Underwriting profit (loss)	2,228		(3,470)		2,535		(399)		894
Combined ratio	96.4%		126.2%		70.5%		170.2%		99.0%

	Non-Marine Reinsurance		Property Insurance		Marine		Syndicate 2		Total
	£'000		£'000		£'000		£'000		£'000
Year 2008 (audited)
Gross premiums written	142,136		39,473		27,435		593		209,637
Net premiums written	113,562		34,403		19,920		774		168,659
Net premiums earned	109,326		30,744		16,418		774		157,262
Net claims incurred	(90,428)		(25,089)		(29,636)		(1,256)		(146,409)
Acquisition costs	(11,209)		(8,871)		(5,401)		(89)		(25,570)
Underwriting expenses	(5,237)		(2,161)		(1,502)		(547)		(9,447)
Underwriting profit	2,452		(5,377)		(20,121)		(1,118)		(24,164)
Combined ratio	97.8%		117.4%		222.5%		244.5%		115.4%

  

Provision for claims

(a) Net incurred claims	Six months 2009		Six months 2008		Year 2008
	(unaudited)		(unaudited)		(audited)
	£'000		£'000		£'000
Claims incurred
- Gross paid claims	57,340		37,616		100,881
- Change in provision for claims	(18,281)		1,564		40,653
	39,059		39,180		141,534
Reinsurance Recoveries
- Received	(14,715)		(6,328)		(10,390)
- Change in provision	10,913		3,631		(18,981)
	(3,802)		(2,697)		(29,371)
Reinsurance to close claims (net)	59,190		34,246		34,246
Net incurred claims	94,447		70,729		146,409

(b) Outstanding claims and unearned premiums	Unearned		Claims		Total
	Premiums		outstanding
	£'000		£'000		£'000
Gross
At 1 January 2009 (audited)	43,067		314,444		357,511
Exchange adjustments			(40,687)		(40,687)
Movement in provisions
- current year	49,371		37,544		86,915
- reinsurance to close claims			71,253		71,253
- prior year			1,515		1,515
- paid claims			(57,340)		(57,340)
At 30 June 2009 (unaudited)	92,438		326,729		419,167
Reinsurance amount
At 1 January 2009 (audited)	1,592		55,081		56,673
Exchange adjustments			(7,217)		(7,217)
Movement in provisions
- current year	34,049		4,053		38,102
- reinsurance to close claims recoveries			12,063		12,063
- prior year			(250)		(250)
- paid recoveries			(14,715)		(14,715)
At 30 June 2009 (unaudited)	35,641		49,015		84,656
Net
At 30 June 2009 (unaudited)	56,797		277,714		334,511
At 31 December 2008 (audited)	41,475		259,363		300,838
At 30 June 2008 (unaudited)	66,795		184,891		251,686

For the six months ended 30 June 2009, adverse development in prior years' claims, net of reinsurance recoveries and reinstatement premiums, amounted to £0.6 million (2008: adverse development of £0.2 million). 

The net outstanding claims are further analysed between notified outstanding claims and incurred but not reported claims (IBNR) below:

	30 June 2009		30 June 2008		31 December 2008
	(unaudited)		(unaudited)		(audited)
	£'000		£'000		£'000
Notified outstanding claims	201,310		120,227		177,750
Claims incurred but not reported	76,404		64,664		81,613
Claims outstanding	277,714		184,891		259,363

The breakdown of the gross and net outstanding claims by category of claims is set out below.

	30 June 2009 (unaudited)				30 June 2008 (unaudited)				31 December 2008 (audited, restated))
	Gross		Net		Gross		Net		Gross		Net
	£'000		£'000		£'000		£'000		£'000		£'000
Large catastrophe provisions	78,966		51,981		35,704		26,821		110,802		65,513
All other short tail provisions	103,371		100,214		88,589		86,080		111,619		111,415
Long-tail provisions (casualty)	39,279		39,279		36,342		36,342		37,168		37,168
Syndicate 3330 provisions	105,113		86,240		43,133		35,648		54,855		45,267
Total	326,729		277,714		203,768		184,891		314,444		259,363

Large catastrophe provisions include Hurricanes Gustav and Ike (2008 Hurricanes) and the 2004 and 2005 Hurricanes.

Reinsurance recoverable

At 30 June 2009, the Company's reinsurance recoverable on outstanding claims amounted to £49.0 million, a decrease of £6.1 million since 31 December 2008, resulting from the collection of reinsurance on the hurricane losses offset by the increased share of balances resulting from the closure of Syndicate 2 into Syndicate 3330 and the impact of the Fairfax quota share. Set out below is an analysis of this balance by reinsurer risk ratings by AM Best (or equivalent S&P rating in the absence of an AM Best rating):

Risk Rating		Reinsurance recoverable
		£'000		%
A+		19,518		39.8
Lloyd's		6,971		14.2
A		12,469		25.5
A-		3,139		6.4
Trust fund backed		5,010		10.2
BBB or below and Non rated		1,908		3.9
Total		49,015		100.0

Included in the "A" Rated reinsurance recoverable balance above is a total of £3.0 million due from an affiliate in respect of the Fairfax Quota Share.

Included in debtors arising from insurance and reinsurance operations are the following reinsurer balances.

		Syndicate  780		Syndicate  3330				Total
		£'000		£'000			£'000
Fully performing		5,861		(346)			5,515
Past due		2		1,747			1,749
Impaired		4,810		16,737			21,547
Provision for uncollectible reinsurance		(3,769)		(12,000)			(15,769)
Net		6,904		6,138			13,042

  

5. FINANCIAL RISK MANAGEMENT

NET INVESTMENT INCOME	Six  months  2009		Six months 2008		Year 2008
	(unaudited)		(unaudited)		(audited)
	£'000		£'000		£'000
Investment Income
Interest	6,558		5,651		12,362
Gain on sale of investments	172		218		1,848
Unrealised gains on investments	14		42		2,556
	6,744		5,911		16,766
Investment expenses and charges
Investment management expenses	(173)		(115)		(236)
Loss on sale of investments	(2,049)		(216)		(1,220)
Unrealised losses on investments	(2,235)		(518)		(183)
	(4,457)		(849)		(1,639)
Net investment income	2,287		5,062		15,127

FINANCIAL INVESTMENTS	30 June  2009 (unaudited)		30 June 2008 (unaudited)		31 December 2008 (audited)
	£'000		£'000		£'000
Carrying Value
Debt securities and other fixed income securities
- Government and government guaranteed	338,066		262,589		349,850
- Holdings in collective investment schemes	4,771		3,373		3,402
- Syndicate overseas deposits	11,974		4,798		7,195
	354,811		270,760		360,447
Purchase Price
Debt securities and other fixed income securities
- Government and government guaranteed	339,666		262,581		345,796
- Holdings in collective investment schemes	4,771		3,373		3,402
- Syndicates' overseas deposits	11,974		4,798		7,195
	356,411		270,752		356,393

All debt securities and other fixed income securities are listed on recognised stock exchanges. All financial investments are classified as fair value through income including short term fixed maturity securities. 

The syndicates' overseas deposits (Joint Asset Trust Funds (JATF)) are managed by Lloyd's. The Company does not have the authority to ensure that its investment policies are complied with. Lloyd's has advised the Company that it has invested the JATF in:

	Company's share £'000
US Government securities	7,885
Corporate bonds rated  AAA	2,917
AA	652
A	428
Asset backed securities (ABS)	18
Cash	74
		11,974

Other than the above investments, over which the Company does not exercise investment authority, the Company only invests in short term government and government guaranteed securities. It does not invest in derivatives, MBS, ABS, equities or corporate bonds given current market conditions.

At 30 June 2009, Syndicate investments of £99.8 million (31 December 2008: £80.9 million) were held in US Situs and other regulatory deposits available for the payment of claims in those jurisdictions and which are not available for the payment of other claims and obligations.

At 30 June 2009, Advent Re had pledged cash and investments of £25.3 million (31 December 2008: £39.5 million) as security for policy limits of contracts written and had placed £16.4 million on deposit at Lloyd's in support of its quota share reinsurance with Advent Capital (No 3) Limited.

CASH AND CASH EQUIVALENTS	30 June  2009		30 June 2008		31 December 2008
	(unaudited)		(unaudited)		(audited)
	£'000		£'000		£'000
Corporate cash at bank	4,017		7,075		1,834
Corporate funds held by Lloyd's	8,982		342		4,484
Advent Re cash at bank	1,072		10,650		5,247
Syndicates' cash at bank	7,677		9,551		372
Syndicates' deposits with credit institutions	323		6,142		199
Total cash and cash equivalents	22,071		33,760		12,136

Cash at bank was held with Royal Bank of Scotland and Barclays Bank. These banks are rated A+ and AA- respectively by Standard & Poor's (S&P).

6. CAPITAL MANAGEMENT

SHARE CAPITAL	Authorised						Allotted, Called-Up and Fully Paid
	30 June 2009		30 June 2008		31 December 2008		30 June 2009		30 June 2008		31 December 2008
	£’000		£’000		£’000		£’000		£’000		£’000
Ordinary shares of 50p each (£000)	50,000		50,000		50,000		20,329		20,329		20,329
Number of shares (‘000s)	100,000		1,000,000		1,000,000		40,657		406,657		40,657

 

EARNINGS PER ORDINARY SHARE	Six  Months 2009		Six  months 2008		Year 2008
	(unaudited)		(unaudited)		(audited)
			Restated
Profit (loss) after tax for the period (£'000)	4,057		1,175		(8,945)
Weighted average number of shares in issue ('000s)	40,657		40,657		40,657
Dilutive shares	168		227		-
Adjusted average number of shares in issue ('000s)	40,825		40,884		40,657
Basic earnings (loss) per share	10.0p		2.9p		(22.0p)
Diluted earnings (loss) per share	9.9p		2.9p		(22.0p)

  

Outstanding debt	Issue date	Due date	Callable (by the Company) after	Interest rate	Interest rate (30 June 2009)	30 June  2009 £'000	30 June 2008 £'000	31  Dec 2008 £'000
Subordinated Notes
US$34 million	3/6/2005	3/6/2035	3/6/2010	3 month LIBOR + 3.90%	5.09%	20,018	16,557	22,894
€12 million	3/6/2005	3/6/2035	3/6/2010	3 month EURIBOR + 3.85%	5.36%	9,887	9,209	11,268
						29,905	25,766	34,162
Senior Notes
US$26 million	16/1/2006	15/1/2026	16/1/2011	3 month LIBOR + 4.50%	5.69%	15,203	12,545	17,400
US$20 million	15/12/2006	15/12/2026	15/12/2011	3 month LIBOR + 4.15%	5.34%	11,764	9,725	13,452
						26,967	22,270	30,852
Total Loan Notes at amortised cost and fair value						56,872	48,036	65,014
Weighted average interest rate, period end						5.28%	7.30%	5.78%

The Loan Notes have no financial covenants other than the payment of interest and principal on maturity. In the case of the Subordinated Notes, interest can be deferred for up to 5 years without creating an event of default. The Notes can be called at the sole option of the Company five years after the date of issue and are non-callable by the holders.

The Subordinated Notes rank on a winding-up of the Company in priority to distributions on all classes of share capital and rank pari passu with each other but are subordinated in right of payment to the claims of all unsubordinated creditors of the Company (including, where applicable, all policyholders of the Syndicate).

The Senior Notes rank on a winding-up of the Company in priority to distributions on all classes of share capital and subordinated loan notes, and rank pari passu with each other but are subordinated in right of payment to the claims of all unsubordinated creditors of the Company (including, where applicable, all policyholders of the Syndicate).

The Subordinated Notes and Senior Notes are listed on the Channel Islands Stock Exchange.

LONG TERM INCENTIVE PLANS

On 20 March 2009, the Company issued 1,516,171 options to purchase ordinary shares of 50p each at an exercise price of 147p per share. The options vest on 20 March 2012 and are exercisable until 20 March 2019.

On 20 March 2009, the Company made grants under its Long Term Incentive Plan of 1,818,576 nil cost options to buy ordinary shares of 50p each. The shares vest as to 30% of the initial grant if the Company's average return on equity exceeds 10% for the three year period from 2009 to 2011 rising to 100% if the average return on equity during the three year period reaches 15% or over more.

FUNDS AT LLOYD'S (FAL)

The Funds held by Lloyd's represent monies deposited with the Corporation of Lloyd's (Lloyd's) to support the Company's underwriting activities. These Funds are subject to a Lloyd's deposit trust deed which gives Lloyd's the right to apply these monies in settlement of any claims arising from the Company's underwriting at Lloyd's. At 30 June 2009, the Company had FAL valued at £125.0 million deposited at Lloyd's.

In addition a major shareholder, Fairfax Financial Holdings Limited (Fairfax), had deposited FAL of £25.0 million at 31 March 2009 (£21.4 million at 31 December 2008) to support the Company's underwriting for the 2001 to 2005 underwriting years pursuant to a Funding Agreement dated 16 November 2000 and pursuant to a Deed of Variation, to support Syndicate 3330.  With the closure of Syndicate 2, the majority of this FAL was released by Lloyd's leaving £3.0 million. All Fairfax FAL is repayable by the end of 2009 whether it is released by Lloyd's or not.

Any underwriting profits arising from the business supported by the Fairfax FAL are receivable by the Company which is also responsible for the payment of any losses arising.

The FAL and the overseas deposits are not available for use by the Company for ordinary cash flow purposes.

In June 2009, the Company received its share of the profit on Syndicate 780's 2006 year of account and an early release on the 2007 year of account totalling £19.0 million (at distribution rates of exchange) which was deposited into FAL funds. The Company deposited additional FAL of £9.0 million on 26 March 2009 to fund the remainder of Syndicate 780's 2008 incurred loss and a further £8.5 million on 17 June 2009. 

7. INCOME TAXES

	30  June 2009		30  June 2008		31  December 2008
	(unaudited)		(unaudited)		(audited)
	£'000		£'000		£'000
Analysis of charge in period
UK corporation tax on profit for the period	-		-		-
Deferred tax	1,652		423		(5,406)
Total taxation	1,652		423		(5,406)

8. INTANGIBLE FIXED ASSETS

	Goodwill on Acquisition		Purchased Capacity - finite life		Purchased Capacity - indefinite life		Total
	£'000		£'000		£'000		£'000
Fair Value
At 30 June 2009 (unaudited)	4,148		-		2,695		6,843
At 31 December 2008 (audited)	4,148		-		2,695		6,843
At 30 June 2008 (unaudited)	4,148		95		2,695		6,938

The consideration paid to third party capital providers of £1.2 million on 30 June 2008 was considered to be a finite life asset and accordingly, the cost has been amortised to expenses as the gross premium income was earned on the 2007 year of account to which the payment relates.

  

9. RECONCILIATION OF PROFIT BEFORE TAX TO NET CASH

INFLOW (OUTFLOW) FROM OPERATING ACTIVITIES

	Six  months 2009		Six months 2008		Year 2008
	(unaudited)		(unaudited) Restated		(audited)
	£'000		£'000		£'000
Profit (loss) before tax	5,709		1,598		(14,351)
Movement in:
- insurance and reinsurance receivables	(75,201)		(67,764)		(69,429)
- other receivables	(7,056)		(921)		(699)
- insurance and reinsurance payables	90,693		106,340		176,050
- trade and other payables	(758)		2,804		700
Interest expense	1,799		2,003		4,258
Investment result	(1,881)		(2,667)		(4,792)
Unrealised investment gains	(2,222)		172		2,374
Net sale (purchase) of investments	7,858		(31,106)		(122,995)
Depreciation	187		170		342
Amortisation of debt issue costs	17		12		26
Amortisation of capacity	-		272		369
Amortisation of share option costs	179		63		165
Exchange movements on opening cash and cash equivalents	939		(28)		(2,529)
Foreign exchange movements on financing Dividend payable	(8,157) -		678 (5,082)		17,640 -
	12,106		6,544		(12,871)

10. RELATED PARTY TRANSACTIONS

Syndicate 780 has entered a quota share arrangement in respect of 40% of the property reinsurance lines of business for the 2009 year of account with CRC Bermuda Limited, a subsidiary of Fairfax Financial Holdings Limited, the company's Ultimate Parent Company. The details of the quota share, as reflected in these accounts, are set out below:

	Six  months 2009		Six months 2008		Year 2008
	(unaudited)		(unaudited)		(audited)
	£'000		£'000		£'000
Statement of comprehensive income
Reinsurance premium ceded - Written	22,282		-		-
Reinsurance premium ceded - Earned	9,673		-		-
Reinsurance recoveries	(4,040)		-		-
Acquisition costs (Overrider and profit commission)	(1,255)		-		-
Statement of Financial Position
Reinsurers' share of outstanding claims	3,005		-		-
Reinsurers share of unearned premium	12,609		-		-
Creditors arising out of Insurance and Reinsurance operations	17,808		-		-

RESPONSIBILITY STATEMENT

We confirm that to the best of our knowledge:

(a) the condensed set of financial statements has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting";

(b) the interim management statement includes a fair view of the information required by DTR 4.2.7R (indication of important events during the first six months); and

(c) the interim management statement includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and charges therein).

By order of the Board

B F Caudle	T J Ambridge
Chairman	Chief Financial Officer

  INDEPENDENT REVIEW REPORT TO ADVENT CAPITAL (HOLDINGS) PLC

Introduction

We have been engaged by the company to review the condensed set of financial statements in the interim financial report for the six months ended 30 June 2009, which comprises the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of changes in equity, the consolidated statement of cash flows and related notes. We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The interim financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim financial report in accordance with the AIM Rules for Companies.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this interim financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the interim financial report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of the AIM Rules for Companies and no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

  Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the six months ended 30 June 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the AIM Rules for Companies.

PricewaterhouseCoopers LLP

Chartered Accountants

28 July 2009

London

Notes:

The maintenance and integrity of the Advent Capital (Holdings) PLC website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

ENDIR QVLFLKDBBBBD